Thursday, April 30, 2015

Eurozone has a moral hazard problem

The moral hazard of the euro-zone is that you had convergence because the markets began to sense that any sovereign was too big to fail and so all these overly indebted countries got to keep on borrowing money at low rates of interest. Had the eurozone never been created and Greece was trying to borrow in drachma they could not have accumulated all that debt because nobody would have loaned them the money. But there was this moral hazard that should have diffused earlier. Instead, they are feeding it by trying to keep it and make it so that nobody defaults and that is a mistake.

We are doing the same thing here. We bailed everyone out. We prevented a lot of defaults that should have been allowed to occur. We have even more moral hazards than they have in Europe. We've got all sorts of people who have borrowed money who are never going to pay it back. We have all these students that have debt, we have mortgages and credit cards and, of course, the federal government can never repay its debts, either. So in that respect we are no different than Greece.


Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009

Tuesday, April 28, 2015

Financial crisis will come to us

People think the financial crisis is in our past. It is not. It is in our future. That was the overture to the opera, the beginning. This thing is far from over. It is the people who didn't understand that crisis that are the ones who think we have solved the problem. They never understood the problem in the first place, which is why they were so blindsided by the '08 financial crisis. I understood the problem. That is why I was warning about it for years and that is why I understand that the problem has only been made worse by the very people and institutions that caused it in the first place.


Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009

Monday, April 20, 2015

Peter Schiff on Greece and Euro [VIDEO]




Peter Schiff is a smart investor and author of several best selling books. He correctly pre\dicted the economic meltdown of 2008 - 2009

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